TheStreet Ratings Top 10 Rating Changes

Written by: Kevin Baker12/03/12 - 2:10 PM EST

Tickers in this article:
AOL C ILMN MNTA HAR MBT KAR VNR CVE LPL

NEW YORK ( TheStreet Ratings ) -- Every trading day TheStreet Ratings' stock model reviews the investment ratings on around 4,600 U.S. traded stocks for potential upgrades or downgrades based on the latest available financial results and trading activity.

TheStreet Ratings released rating changes on 59 U.S. common stocks for week ending November 30, 2012. 33 stocks were upgraded and 26 stocks were downgraded by our stock model.

Momenta Pharmaceuticals Inc (MNTA) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, weak operating cash flow, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

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Highlights from the ratings report include:

The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Biotechnology industry. The net income has significantly decreased by 142.8% when compared to the same quarter one year ago, falling from $60.34 million to -$25.82 million.

Net operating cash flow has significantly decreased to -$7.06 million or 110.18% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. When compared to other companies in the Biotechnology industry and the overall market, MOMENTA PHARMACEUTICALS INC's return on equity has significantly outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.

Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 30.71%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 143.22% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

MOMENTA PHARMACEUTICALS INC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, MOMENTA PHARMACEUTICALS INC increased its bottom line by earning $3.55 versus $0.76 in the prior year. For the next year, the market is expecting a contraction of 134.9% in earnings (-$1.24 versus $3.55).